The majority of employees have never spoken to their line manager about their financial wellbeing, but the younger generation is slowly changing that norm, according to the latest report from Aviva.
The report found that younger employees are more willing to bring up their financial concerns to authority figures. Leading the survey are 25-34-year-olds at 39%, followed by 18-24-year-olds at 31% and 35-44-year-olds at 28%.
Meanwhile, Gen X and Boomers are the least likely of the generations to open up to bosses at 12% and 17%, respectively – the two age groups approaching, if not already in, retirement.
“Talking money with an employer appears to be one of the last workplace taboos,” said Emma Douglas, director of workplace savings and retirement at Aviva. “Young workers are clearly breaking down the stigma associated with talking to the boss about the ‘m’ word, but it is important that all generations of workers feel they can talk about their financial wellbeing with their employer.”
When employers are confronted with a financial concern, Douglas stated one type of support they can provide to employees is good retirement savings. This is especially important considering that one in five employees is unaware of how much of their salary goes into their pension, Aviva found.
“It is a shame that so many people who have a workplace pension and are worried about not being able to retire comfortably have never spoken to their manager about their concerns,” Douglas said. “Pensions are designed to be a long-term investment and any decisions made today will echo throughout a person’s retirement.”
However, employee unwillingness to raise financial concerns could be pointing to something more profound than a lack of awareness. One in three employees believes their workplace pension won’t be enough for them to retire comfortably. In addition, only 15% of those surveyed trust their human resources or line manager to guide them about pension schemes.
With that in mind, awareness could be the key to combating this sense of defeat, which Aviva is hoping to make strides towards with the launch of a new seminar this week. The seminar will teach employees how to budget, save money on household bills, understand debt and manage mental health. It is free for Aviva workplace pension scheme members.
